Resolution 1979-104
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RESOLUTION NO. 79-104
RESOLUTION OF THE CITY COUNCIL 0F THE CITY OF GILROY
APPROVING AN AMENDMENT TO THE AGREEMENT FOR ENGINEERING
CONSULTING SERVICES SE~lliRAGE FACILITIES, DATED JULY 20,
1970.
~lliEREAS, the Agreement for Engineering Consulting Services
Sewerage Facilities, dated July 20, 1970, has been previously sub-
mitted to and approved by the City Council; and
vlliEREAS, an Amendment to said Agreement has been prenared
and submitted to the City Coucnil; and
NOW, THEREFORE, BE IT RESOLVED that the Gilroy City Council
hereby approves said Amendment to the Agreement for Engineering
Consulting Services Sewerage Facilities dated July 20, 1970, with
CONSOER, TO~~SEND & ASSOCIATES, Consulting Engineers, a co-partner-
ship, said amendment shown as Exhibit "A" to this resolution and
made part hereof by this reference, and authorizes execution thereof.
PASSED AND ADOPTED at a regular meeting of the City Council
of the City of Gilroy this 19th day of November, 1979, by the follow-
ing vote:
AYES:
COUNCIL MEHBERS: CUNNINGHAM, HUGHAN, LINK, PATE,
TAYLOR and GOODRICH
NOES:
COUNCIL MEHBERS: NONE
COUNCIL :t-1EHBER: ALBERT
ABSENT:
APPROVED:
ATTEST:
~,,,~~d(
Hayor
r?L"'n2Al~~~
RESOLUTIOH NO. 79-104
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AMENDMENT TO
AGREEMENT FOR ENGINEERING CONSULTING SERVICES
SEWERAGE FACILITIES
DATED 20th DAY OF JULY 1970
This Agreement Amendment entered into this 19th day
of November , 1979, by and between the CITY OF GILROY, a
municipal corporation of the State of California, hereinafter
called "City", and CONSOER, TOWNSEND & ASSOCIATES, Consulting
Engineers, a co-partnership, 1671 The Alameda, San Jose,
California 95126, hereinafter called "Engineer".
WIT N E SSE T H
WHEREAS, the City and the Engineer have previously
entered into an Agreement dated July 20, 1970, entitled
"Agreement for Engineering Consulting Services Sewerage
Facilities", as supplemented November 6, 1974, and as amended
August 1, 1977, March 19, 1979 and May 7, 1979, and
WHEREAS, the City has contracted for Wastewater Treat-
ment plant Improvements and Interceptor Sewer Construction
on the basis of plans and specifications for such project
prepared by the Engineer, and
WHEREAS, the Engineer is currently providing detailed
inspection of construction services under Division "D" of
the amendment dated May 7, 1979, and
WHEREAS, said Division "D" provides for the services
of one inspector of construction for a maximum of 1,038
man-hours within 185 calendar days after the interceptor
construction contractor on the project is authorized to
proceed, and
WHEREAS, said interceptor construction will continue
beyond 185 calendar days and the City and the Engineer have
mutually agreed to extend both the time limit and the
number of man-hours for the inspector of construction.
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NOW, THEREFORE, for and in consideration of their
mutual promises and subject to the terms, provisions and
conditions hereinafter set forth, the parties hereto do
hereby agree as follows:
I. Division "D" is hereby amended to read as follows:
"DIVISION "D"
DETAILED INSPECTION OF CONSTRUCTION
1. The City agrees that all construction work shall
be done under the full time inspection of a qualified
resident engineer and by such additional inspectors of
construction as may be required for properly inspecting the
construction of the project. It is understood and agreed
that the resident engineer and all inspectors furnished by
the Engineer shall be subject to the approval of the City.
2. As the scope of work for this Division "D" the
Engineer shall provide the services of one resident engineer
for a maximum of 3,120 man-hours and the services of one
inspector of construction for a maximum of 1,482 man-hours.
The above stated man-hours for the resident engineer shall
be provided within a time period of no more than 550 calendar
days after the treatment plant construction contractor on
the proj~ct is authorized to proceed. The above stated man-
hours for the inspector shall be provided within a time
period of no more than 303 calendar days after the inter-
ceptor construction contractor on the project is authorized
to proceed. Additional inspectors of construction shall be
employed whenever it is necessary for the inspection of the
work; for example, when the inspection work is being carried
on in a number of locations simultaneously and it is impos-
sible for two persons to inspect all construction work in
progress, or whenever due to the complexity of the work and
the volume it is impossible for two persons to inspect all
work in progress. Said additional inspectors of construction
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may be furnished by the Engineer or the City, however, this
is not included within the scope of work of this Division
"D" under this amendment.
If said additional inspectors of
construction are furnished by the Engineer then, the cost
ceiling and profit shall be increased by an amendment to the
original agreement.
3. The Engineer shall endeavor to guard the City
against defects and deficiencies in the work of the construc-
tion contractors, but does not guarantee the performance of
construction contractors.
4. The Engineer shall proceed with the work under
this Division "D" only upon receiving written authorization
from the City to do so. "
II. The following section after Division "G" is
hereby amended to read as follows:
"COMPENSATION TO BE PAID ENGINEERS FOR
SERVICES DESCRIBED IN DIVISIONS "D", "F", AND "G"
As compensation for all services described in amended
Divisions "D", "F~ and "G" above, the City agrees to pay the
Engineer in accordance with the cost reimbursement procedures
described below:
1. Cost Ceiling
The City and the Engineer, having negotiated for the
performance of services as described in Divisions "D", "F",
and "G" of this agreement, mutually agree to the establish-
ment of a cost ceiling in the amount of $221,123 for the
performance of said services.
The established cost ceiling, as identified above,
includes the following cost elements:
a. Direct labor
b. Overhead (indirect cost)
c. Direct costs
d. Profit
The established cost ceiling of $221,123 may not be
exceeded without formal written amendment of this agreement.
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If changes in the scope or amount of the work described in
Divisions "D", "F",and "G" occur because of the requirements
of Federal or State agencies, the need and extent of an
increase in the cost ceiling, including any or all parts
(direct labor, overhead (indirect cost), direct costs and
profit) thereof in order to compensate the Engineer shall be
determined by the Engineer and the City, when and if the
occasion arises.
2. Prof i t.
The City and the Engineer having negotiated for
the performance of services as described in Divisions "D",
"F~ and "G" mutually agree to the establishment of a fixed
dollar profit in the amount of $28,516 to be paid to the
Engineer for the performance of services described herein.
Said profit in the amount of $28,516 shall be paid to the
Engineer irrespective of the amount of money paid for direct
labor, plus overhead (indirect cost ), plus direct costs,
but the total amount paid to Engineers for direct labor,
overhead (indirect cost), direct costs and profit shall not
exceed the established cost ceiling of $221,123. The
fixed dollar profit-shall only be increased if the scope of
work described hereinabove to be performed or furnished by
the Engineer is increased by the City.
3. Compensation Procedures - Periodic Progress Payment
The City agrees to compensate and otherwise reim-
burse incurred expenses of the Engineer by making monthly
progress payments based upon the value of work and services
performed by the Engineer under this agreement.
The Engineer shall prepare and furnish monthly progress
payment requests to the City, accompanied by supporting
documentation, based upon the value of work and services
performed.
The City shall make said monthly progress payments,
provided the work which such payments cover has been per-
formed in accordance with the terms and provisions of this
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agreement, to the Engineer as follows:
a. Direct labor cost equal to the actual wages
or salaries paid to personnel of the Engineer's
staff, including officers assigned to perform
the work and services. Normal payroll rates
are for 8 hours/day, 40 hours/week. Non-
professional staff will have an overtime rate
of 1-1/2 times regular rate, and the professional
staff at regular rate for overtime work, plus
b. Overhead (indirect cost) equal the total
direct labor times a multiplier of 1.30, plus
c. Direct costs (cost not included in overhead
or direct labor cost) equal to the actual
cost incurred by Engineer, if any, including
but not limited to costs of subcontracts and
relocation expenses for personnel provided
under Division "D", plus
d. Profit equal to the sum of total direct
labor, plus overhead, all times a multiplier
of 0.15.
Said monthly progress payments shall be paid by the
City to the Engineer within 30 days after invoice submission.
If monthly progress payments are not paid within 30 days
after invoice submission, interest on such outstanding
invoices will be charged at an annual rate of 10 percent or
the maximum amount permitted by law, whichever is less.
It is agreed that the overhead rate stated in paragraph
3.b. above is an estimated rate that is expected during the
accounting period (fiscal year) in which the work will be
performed. At the end of each accounting period in which
work on this project is performed, the actual overhead rate
shall be determined. If said overhead rate is greater than
or less than that stated in paragraph 3.b. an adjusted
invoice shall be issued to the City by the Engineer either
for the amount due the Engineer if the overhead rate is
greater or for the credit due the City if the overhead rate
is less.
The sum of all direct labor plus overhead, plus direct
cost, plus profit, shall not exceed the established cost
ceiling for this agreement except as provided hereinbefore.
The profit shall not exceed the sum of $28,516 except as
provided hereinbefore.
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Also included for information purposes only is a copy
of EPA Form 5700-41 for the Engineer covering the services
set forth in Divisions "D", "F~ and "G" of this agreement.
It is understood that said document is not a part of this
Agreement.
4. Other Compensation provisions
It is further understood and agreed that compensation
due the Engineer for services performed under any or all
divisions of this Agreement shall not be contingent or
dependent upon the City's receipt of funds from any Federal,
State or local governmental unit or from any outside agency
or entity.
It is agreed that if engineering services provided
under Divisions "D" and "F" of this agreement cannot be
completed by November 30, 1980, or if the engineering services
provided under Division "G" of this agreement cannot be
completed by May 31, 1981, due to delay in completion of
project construction, the cost ceiling and fixed dollar
profit to be paid to the Engineer shall be renegotiated to
mutually agreeable amounts.
It is agreed t~at the costs incurred by the Engineer
for relocation expens~sof personnel to be provided under
Division "D" of this agreement are direct costs and the
Engineer will be compensated for them as such under the
terms of paragraph 3 above. It is understood and agreed
that in the event the City requires special insurance coverage
for the project as covered by this agreement which coverage
is over and above the standard insurance coverages maintained
by the Engineer, any increase to premiums due to this additional
or special coverage shall be reimbursed to the Engineer by
the City as a direct cost.
The City agrees to pay the Engineer for all costs and
expenses incurred for goods and services furnished by the.
Engineer relative to the providing of the information,
books, records, reports, documents, and all other relevant
material related to the provisions of Division "H" of this
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agreement. The costs and expenses payable by the City to the
Engineer shall be in accordance with the compensation procedures
described under the terms of paragraph 3 above and the cost
ceiling and profit shall be increased accordingly by an
amendment to the original agreement."
IN WITNESS WHEREOF, the CITY OF GILROY, as the City, by
Fred O. Wood
, and the Engineering firm
of CONSOER, TOWNSEND & ASSOCIATES, by Frederick N. Van Kirk,
Partner, have caused this Agreement to be signed this 19th
day of
November , 1979.
CITY OF GILROY, CALIFORNIA
ATTEST:
A~~~~.
,. City Clerk. .
CONSOER, TOWNSEND & ASSOCIATES
BY~~~
FREDERICK N. VAN KIRK,
PARTNER
WITNESS:
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<COST OR PRICE SUMMARY FORMAT FOR SUBAGREEMENTS UNDER U.S. EPA GRANTS
(See accompanying in'structiolls before completing this form)
Form Approved
OMB No. 158-R0144
PARTI.GENERAL
1. GRANTEE
City of Gilrov
3. NAME OF CONTRACTOR OR SUBCONTRACTOR
2. GRANT NUMBER
C-06-1019-10
Consoer. Townsend & Associates
5. ADDRESS OF CONTRACTOR OR SUBCONTRACTOR (Include ZIP code)
4. DATE OF PROPOSAL
November 6, 1979
6. TYPE OF SERVICE TO BE FURNISHED
1671 The Alameda
San Jose, CA
Additional Detailed Inspection
of Construction
PAR T II. COST SUMMARY
7. DIRECT LABOR (Specify labor categories)
ESTI-
MATED
HOUR~
HOURLY
RATE
ESTIMATED
CO~T
Inspector - Add~t1Q~~1 Ho~~s 656 $11.54 $ 7,570
___Less_;JJ]._s2_~_Gt.or-UnusedJ:!911};?________ __~121-.l:.9. 38__~_?Jn)~-=
Within l_?:>_Qa,y.8________________ __ m_________ ____________
'. ..
.'
TOTALS
. '.'"
'...... '.
-------------- ----- ,-------.-- --..--------
.
DIRECT LABOR TOTAL:
.' i' '. 5, 69
e. INDIRECT COSTS (Specify indirect cost pools)
RATE
x BASE
ESTIMATED
COST
C i..1
. .. :.'
$ b, ~~u
. - -- ....-.--.
Overhead
-- ..-
1 ~9_% $
5,)69.
$ 6,980
'-
'-"---' ".- -- -- ----------------
See attached Exhibit "l?~~e: Acco~ntin( policies
INDIRECT COSTS TOTAL:" · . . ..
9. OTHER DIRECT COSTS
a. TRAVEL
----
ESTIMATED
COST
TRAVEL SUBTOTAL:
I.. . .
1 QTY
$
$
$
(1) TRANSPORTATION
(2) PER DIEM
b. EQUIPMENT, MATERIALS, SUPPLIES (Specify categories)
ESTIMATED)
COST)
$ $
------.---- ------_._----[/:
COST
d. OTHER (Specify categories)
ESTIMATED
COST
p~~
I. .. . i...........'..... ......
. ..:'.....
. . .... ..........
. ..
. . .'
. .
. .
." '.
. . ....
EQUIPMENT SUBTOTAL:
c. SUBCONTRACTS
ESTIMATED
COST
$
..-------- ,------ )>
SUBCONTRACTS SUBTOTAL:
I' .... I
---------
$ ,
$
OTHER SUBTOTAL:
- ....----,
e. OTHER DIRECT COSTS TOTAL:
______. ______i.. _ _ ___ _
10. TOTAL ESTIMATED COST
11. PROFIT
12. TOTAL PRICE
E PA Form 5700-41 (2-76)
I . $
\
. .. J. .-.- ....---. --..' --- ---------..
........ $
.~._.........C_~~.n______.. _ _
$ 12,349
$ l,~~~
~ 14,201
PAGE10FS
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Forrn Apprt td
0,\1111\'0, 158-R0144
,t
PART III - PRICE SUMMARY
13.
COMPETITOR'S CATALOG LISTINGS, IN-HOUSE ESTIMATES, PRIOR QUOTES
(Indicate basis lor price comparison)
MARKET
PRICEISI
PROPOSED
PRICE
PART IV - CERTIFICATIONS
14. CONTRACTOR
14a. HAS A FEDERAL AGENCY OR A FEDEPALLY CERTIFIED STATE OR LOCAL AGENCY PERFORMED ANY REVIEW OF YOUR
ACCOUNTS OR RECORDS IN CONNECTION WITH ANY OTHER FEDERAL GRANT OR CONTRACT WITHIN THE PAST TWELVE MONTHS'
~ YES 0 NO (If IIYes" give flame address Bnd telephone number of reviewing office)
EPA Audit Agency, Region V
230 N. Dearborn street
Chicago, Illinois (312) 353-5250
14b .THIS SUMMARY CONFORMS WITH THE FOLLOWING COST PRINCIPLES
41 CFR 1-15.4
14c.
This proposal is submitted for use in connection with and in response to (1) Request from City
(3)
California
. This is to certify to the best of my knowledge
summarized herein are complete, current; and accurate as of
and that a financial management c'ilpability exists to fully and accu-
DATE OF
PROPOSER
Partner
TITLE OF PROPOSER
IS. GRANTEE REVIEWER
I certify that I have reviewed the cost/price summary set forth herein and the proposed costs/price appear
acceptable for sIIb8greement award,
DATE OF EXECUTION
SIGNATURE OF REVIEWER
TITLE OF REVIE"'.'ER
16. EPA RE"VIEWER (If applicable)
DATE OF EXECUTION
SI GNA TURE 0 F R E VI EWER
TITLE OF REVIEWER
EPA Form 5700-41 (2-76)
PAGE20FS
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I':PA FO'U.l 5700-1l1 (2-7())
CITY Of.' GILr{IJY, CALII-'!)!ml^
SEWAGE FACILITIES
cn~~;:;OI':n, '('O!'INSEND & l\SS0C I l\TES l\CC()lJ~IT [.V~ POL I C I ES
FOH DETER~lI NG COSTS ON CONTRACTS FO[{ ENGI NEt:!U NG SEHVICt:S
All direct labor IS i1ccounted for in detailed pel~nlan(~nL records
and charqed to individual projects on the basis of hOU1~S worked
and actual wage rates at the time services are performed.
. .
All services provided by consultilnts outside the fir'n ilre ilccounted
for by project and do not constitute il 9art of the overhead pool.
In accordance \Jith 10n9 established ljovernment policy, certain costs
ure considered non-ill.lO\vdble and are excluded for overhead. These
include:
l\clvertising
Entertninment and Promotion Expenses
Commissions
Bad Debts
Charitnble Donations
Interest on Borrowed Capital
Overhead is exnressed as a percentage of direct lahor uno consists
of all allowilble costs which cannot be directly allocated to projects.
These accountinc; practices have been consistently followed by
Consoer, Townsend and Associates for determining costs.
All the principals of Consoer, Townsend & Associates devote
full time exclusively to the firm's operations. Principals'
spent on specific projects is chargeo to that project. Time
devoted to specific projepts (administrative ti;ne) becomes a
the overhead pool.
their
time
not
part
of
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I, SUSANNE E. STEINNETZ, City Clerk of the City of Gilroy,
do hereby certify that the attached Resolution No. 79-104
is an
original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the 19th
day of
November
, 19..!.J....., at which meeting . quorum was
present.
IN WITNESS ltJUEREOF, I have hereunto set my band and affixed
the Official Seal of the City of Gilroy, this 30th
day of
November
, 1979 .
By
Susanne E. Steinmetz
City Clerk of the City of
&;.~ t2 ~~
eputy ti y e
Gilroy